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Tuesday, August 09, 2005
Infoworld has an interesting article with indicative metrics for returns on RFID investment - though the actual details of solutions,investments, savings and returns computed are not revealed - a peek into process efficiencies makes interesting reading. For Gillette, RFID has improved order processing, streamlined inventory management systems, and increased shipment accuracy, providing operational cost savings in excess of 20 percent per distribution center. The Gillette Company uses RFID for both pallet and case applications. It moves its inventory to a packaging center, where they are placed into cases and moved to the DC to be compiled into customer orders. Before the EPC (Electronic Product Code), this procedure required an operator to scan the cases at least five times, and involved at least three different keyboard operations. For example, somebody had to count the number of cases on each pallet and verify that each case contained the right product. The process for a pallet to go from packaging to the DC took about 20 seconds. With EPC in place, all the cases in a pallet are scanned with RFID readers as they move along the conveyor belt. Moving a pallet to the DC now takes five seconds, or 25 percent less time.
Category :RFID, Emerging Technologies |
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